Purchase Health Insurance
If you’re shopping for health insurance, your head is probably spinning from the many different options available. It can all be a little overwhelming. This article looks at different ways to compare health insurance plans.
Type of Insurance
There are several different types of health insurance plans available.
- HMOs (Health Maintenance Organizations) assign you to a primary care physician within their network. All of your care is coordinated by that physician. Typically you must get a referral to go to a specialist and the insurance will only pay as long as you go to in-network healthcare providers and facilities
- PPOs (Preferred Provider Organizations) provide more flexibility in choosing your doctors, although services sought in-network are covered at higher rates than those sought out-of-network.
- FFS (Fee for Service) arrangements typically provide no restrictions on healthcare providers but may charge very high premiums.
Premiums
The premium is the amount you pay each month for the health insurance. Although it may be tempting to simply pick the plan with the lowest premium, it’s important to know what you’re getting for your money.
Deductible
The deductible is the amount you must pay out of pocket before the insurance kicks in.
Plans with high deductibles are often referred to as “catastrophic” health insurance plans, since they usually only kick in following an extended and expensive health event. Premiums for catastrophic health insurance plans are usually at the low end of the scale.
Co-Pays
Once the deductible has been met, the co-pay is your share of the cost of medical care. Co-pays may be expressed in dollars (e.g., a $30 co-pay for a doctor’s office visit) or in percentages (e.g., insurance covers 80% of a hospital bill).
Once you know what to look for, it’s important to compare the plans you’re considering and choose the one that most closely meets your financial and medical needs.